According to Forbes, J C Penney Company Inc (NYSE:JCP) should be able to recover approximately $6 billion in sales that it lost from 2011 to 2013. Forbes attributes the reason for this recovery to J C Penny’s renewed interest in a marketing and strategic shift with customer-orientation in mind. In 2016, it is expected that J C Penny shall be making more revenue from sales due to core customer focus and weak competition from Kohl’s Corporation (NYSE:KSS), KMART CORPORATION and Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS).
J C Penny’s marketing and strategic transition
Apart from the reasons mentioned above, J C Penny is also paying more attention to shifting its marketing dollars to development and overhaul of departments that cater to the specific needs of customers. Also, it has introduced a range of specialized catalogues, which is paramount in order to win over the trust of its customers.
Refurbishing the home business with direct e-mail marketing
Recently J C Penny e-mailed its 120-pages catalogue of home business to the target audience. This is seen as a right step in refurbishment of the home business. The catalogues put forth, a whole spectrum of home-related products, ranging from furnishings to home accessories. Earlier in 2015 too, J C Penny had e-mailed its catalogue.
This direct e-mail marketing card can prove to be a successful gamble because it will give a fair and real chance to the company to get back on its feet in the market. The home business comprised of approximately 24% of the business of J C Penny earlier. Later, this business was decimated because it hit a record low (8%) of the overall sales in the era of Ron Johnson. This direct marketing concept will allow J C Penny is regaining and strengthening the store image.
Focus on exciting core customer
The strategc and marketing changes being incorporated in J C Penny seem to be the plans of company’s CEO, Marvin Ellison. Apart from the home business, the company is also giving due attention to the apparel business. Recently it has launched the new retail category for plus size women clothing.
With home and apparel categories giving around 70% of the sales growth to J C Penny, it only seems plausible for it to find ways in exciting and re-engaging the core customers by any means possible.